I’m a dunce when it comes to big finance, especially when it comes to what hedge funds do, but it seems to be pretty dumb to invest in the sinking economy of a very small, poor and over-leveraged nation with limited resources.
A bailout, especially one that nobody else knows about, would increase your investment’s value tremendously. Buy low on the doom and gloom, sell high after the ‘unexpected’ bailout.
Buy low. Sell high.
the strategy was to buy bonds at 10cents on the dollar(or euro),
and sell at 50 cents when the bailout materialized